Since this might be a question for other people, here are the results of my findings:
I have tried two options using XGB Regression with different objective functions including:
A linear regression objective function ("reg:linear" or "reg:squarederror") and transformed the target to the log space
A gamma objective function ("reg:gamma"), which is useful for a skewed target with gamma distribution, e.g., insurance claims severity. In this case, I did not transform my target to the log space.
In my case, option 1 performed better than option 2 (around 15-20%). However, depending on the nature of the data one of them might outperform the other one.
Also, here is one potential option as the objective function "reg:squaredlogerror"